International Journal of Trend in Scientific Research and Development (IJTSRD)

Volume 6 Issue 6, September-October 2022 Available Online: www.ijtsrd.com e-ISSN: 2456 – 6470

A Study on Risk and Return Analysis on Selected

Equities with Reference to Shriram Insigh
G. Naveen, Dr. P. Basaiah M.com, MBA, ICWA, Ph.D.
School of Management Studies, JNTU, Anantapur, Andhra Pradesh, India

How to cite this paper: G. Naveen | Dr. P. Basaiah
"A Study on Risk and Return Analysis on Selected
Equities with Reference to Shriram Insigh"
Published in International Journal of Trend in
Scientific Research and Development (ijtsrd),
ISSN: 2456-6470, Volume-6 | Issue-6, October
2022, pp.358-371, URL:
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INTRODUCTION
The return on an investment and the risk of an
investment are basic concepts in finance. The
risk/return relationship is a fundamental concept in not
only financial analysis, but in every aspect of life. If
decisions are to lead to benefit maximization, it is
necessary that individuals/institutions consider the
combined influence on expected (future) return or
benefit as well as on risk/cost. Return expresses the
amount which an investor actually earned on an
investment during a certain period. Return includes
the interest, dividend and capital gains; while risk
represents the uncertainty associated with a particular
task. In financial terms, risk is the chance or
probability that a certain investment may or may not
deliver the actual/expected returns.
Investors attempt to maximize the expected return of
their investment portfolio for a given amount of
portfolio risk, or to minimize risk for a given level of
expected return, which means that an investor who
wants higher expected returns must accept more risk.
Stock market investors must therefore identify various
risk factors and evaluate the influence of these risk
factors on the stock returns in the stock market.
Identifying and investigating risk factors in the stock
market can also be important for improving stock
market performance. If investors are assured about the
long-term performance of the stock market and the
amount of risk is consistent with their expectations,
investment in the stock market will increase and lead
to economic development.
Risk and return are thus two important factors in stock
market investments. The risk-return trade-off in the
capital market and the behavior of stocks in response
to risk factors have long interested economists. Risk
factors that affect stock returns include unsystematic
risk (or diversifiable risk) and systematic risk.
Unsystematic risk is specific to a portfolio and it is
controllable and reducible by diversification, but
systematic is due to external factors and is not
reducible by diversification. The systematic risk-
return trade-off in the stock market and the reaction of
stock returns to a variety of systematic risk factors are
very important aspects in the field of finance.
Among the various systematic risk factors affecting
stock returns, market risk is one of the most important
factors and many studies have focused on it. Some
studies show that individual asset prices such as stock
prices are also sensitive to other systematic risk
factors including economic news, and stock returns
are influenced by unexpected fluctuations in
macroeconomic variables such as oil prices, exchange
rates and inflation. Thus, in addition to market risk,
the economic risks faced by a country can also be
considered as risk factors that affect stock returns
RISK:
Definition:
Risk implies future uncertainty about deviation from
expected earnings or expected outcome. Risk
measures the uncertainty that an investor is willing to
take to realize a gain from an investment.
Meaning:
Risk is defined in financial terms as the chance that
an outcome or investment's actual gains will differ
from an expected outcome or return. Risk includes
the possibility of losing some or all of an original
investment.
Types of Risk:
Broadly speaking, there are two main categories of
risk: systematic and unsystematic. Systematic risk is
the market uncertainty of an investment, meaning that
it represents external factors that impact all (or many)

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companies in an industry or group. Unsystematic risk
represents the asset-specific uncertainties that can
affect the performance of an investment.
Below is a list of the most important types of risk for
a financial analyst to consider when evaluating
investment opportunities:
Systematic Risk – The overall impact of the
market
Unsystematic Risk – Asset-specific or company-
specific uncertainty
Political/Regulatory Risk – The impact of
political decisions and changes in regulation
Financial Risk – The capital structure of a
company (degree of financial leverage or debt
burden)
Interest Rate Risk – The impact of changing
interest rates
Country Risk – Uncertainties that are specific to
a country
Social Risk – The impact of changes in social
norms, movements, and unrest
Environmental Risk – Uncertainty about
environmental liabilities or the impact of changes
in the environment
Operational Risk – Uncertainty about a
company’s operations, including its supply chain
and the delivery of its products or services
Management Risk – The impact that the
decisions of a management team have on a
company
Legal Risk – Uncertainty related to lawsuits or
the freedom to operate
Return:
Definition:
A return, also known as a financial return, in its
simplest terms, is the money made or lost on an
investment over some period of time.
Meaning:
Return, also called return on investment, is the
amount of money you receive from an investment.
You can think of it this way. For every dollar you
put into an investment, the investments earns two
dollars. This money that the investment earns is
considered your return.
Nominal Return
A nominal return is the net profit or loss of an
investment expressed in the amount of dollars (or
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other applicable currency) before any adjustments for
taxes, fees, dividends, inflation, or any other
influence on the amount. It can be calculated by
figuring the change in the value of the investment
over a stated time period plus any distributions minus
any outlays.
Distributions received by an investor depend on the
type of investment or venture but may include
dividends, interest, rents, rights, benefits, or other
cash-flows received by an investor. Outlays paid by
an investor depend on the type of investment or
venture but may include taxes, costs, fees, or
expenditures paid by an investor to acquire, maintain,
and sell an investment.
Real Return
A real rate of return is adjusted for changes in prices
due to inflation or other external factors. This method
expresses the nominal rate of return in real terms,
which keeps the purchasing power of a given level of
capital constant over time.
Adjusting the nominal return to compensate for
factors such as inflation allows you to determine how
much of your nominal return is real return. Knowing
the real rate of return of an investment is very
important before investing your money. That’s
because inflation can reduce the value as time goes
on, just as taxes also chip away at it.
INDUSTRY PROFILE:
Indian financial market consists of money market and
capital market. Money market is mainly for the short-
term needs and capital market for long term needs.
CAPTAL MARKET AND ITS STRUCTURE
Capital market is a financial market, which provides
and facilitates an orderly exchange of long term
needs. The capital market in India is classified into
Primary market
Secondary market
The primary market deals with new issue of long term
securities. Whereas the secondary market deals with
buying and selling of old, second hand, existing
securities, which are already listed in official trading
list of recognized stock exchange. Players of ‘New
Issue Market’ are mainly, among them the most
important are:
Merchant banker’s
Registrars
Collecting and coordinating bankers
Underwriters and broker
Players of secondary market are:
Issuers of securities like companies
Intermediaries like brokers, and sub-brokers etc.
 International Journal of Trend in Scientific Research and Development @ www.ijtsrd.com eISSN: 2456-6470
NATIONAL STOCK EXCHANGE (NSE)
The National Stock Exchange (NSE) is India's
leading stock exchange covering various cities and
towns across the country. NSE was set up by leading
institutions to provide a modern, fully automated
screen-based trading system with national reach. The
Exchange has brought about unparalleled
transparency, speed & efficiency, safety and market
integrity. It has set up facilities that serve as a model
for the securities industry in terms of systems,
practices and procedures. NSE has played a catalytic
role in reforming the Indian securities market in terms
of microstructure, market practices and trading
volumes. The market today uses state-of-art
information technology to provide an efficient and
transparent trading, clearing and settlement
mechanism, and has witnessed several innovations in
products & services viz.
demutualization of stock exchange governance,
screen based trading, compression of settlement
cycles, dematerialization and electronic transfer of
securities, securities lending and borrowing,
professionalization of trading members, fine-tuned
risk management systems, emergence of clearing
corporations to assume counterparty risks, market of
debt and derivative instruments and intensive use of
information technology. The National Stock
Exchange of India Limited has genesis in the report
of the High Powered Study Group on Establishment
of New Stock Exchanges, which recommended
promotion of a National Stock Exchange by financial
institutions (FIs) to provide access to investors from
all across the country on an equal footing. Based on
the recommendations, NSE was promoted by leading
Financial Institutions at the behest of the Government
of India and was incorporated in November 1992 as a
tax-paying company unlike other stock exchanges in
the country. On its recognition as a stock exchange
under the Securities Contracts (Regulation) Act, 1956
in April 1993, NSE commenced operations in the
Wholesale Debt Market (WDM) segment in June
1994. The Capital Market (Equities) segment
commenced operations in November 1994 and
operations in Derivatives segment commenced in
June 2000.
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BOMBAY STOCK EXCHANGE (BSE)1
ABOUT BSE
Bombay Stock Exchange Limited is the oldest stock
exchange in Asia with a rich heritage. Popularly
known as "BSE", it was established as "The Native
Share & Stock Brokers Association" in 1875. It is the
first stock exchange in the country to obtain
permanent recognition in 1956 from the Government
of India under the Securities Contracts
(Regulation) Act, 1956.The Exchange's pivotal and
pre-eminent role in the development of the Indian
capital market is widely recognized and its index,
SENSEX, is tracked worldwide. Earlier an
Association of Persons (AOP), the Exchange is now a
demutualised and corporatized entity incorporated
under the provisions of the Companies Act, 1956,
pursuant to the BSE (Corporatization and
Demutualization) Scheme, 2005 notified by the
Securities
Exchange Board of India (SEBI). With
demutualization, the trading rights and ownership
rights have been de-linked effectively addressing
concerns regarding perceived and real conflicts of
interest. The Exchange is professionally managed
under the overall direction of the Board of Directors.
The Board comprises eminent professionals,
representatives of Trading Members and the
Managing Director of the Exchange. The Board is
inclusive and is designed to benefit from the
participation of market intermediaries.
system of the Exchange and is BS 7799-2-2002
certified. The surveillance and clearing & settlement
functions of the Exchange are ISO 9001:2000
certified.
HERITAGE
First in India to introduce Equity Derivatives
First in India to launch a Free Float Index
First in India to launch US$ version of BSE Sensex
First in India to launch Exchange Enabled Internet
Trading Platform First in India to obtain ISO
certification for Surveillance, Clearing & Settlement
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RESEARCH METHODOLOGY TOOLS AND TECHNIQUES
NEED OF THE STUDY Graphs
The study helps in the measurement of risk and Mean
return that helps the investor to take investment Standard deviation
decisions wisely. Sharpe ratio
SCOPE OF THE STUDY T test
The study is confined to calculation of risk and
SOFTWARES
return of selected equities for the period of five
MS EXCEL
years i.e 2017-2021.
HYPOTHESIS
OBJECTIVES OF THE STUDY H0:There is no significance difference between risk
To study the relationship between risk and return
and return of selected equities.
analysis of selected equities.
To analyse the performance of selected equities. H1:There is a significance difference between risk
To rank the companies on the basis of risk and and return of selected equities
return of selected equities LIMITATIONS OF THE STUDY:
RESEARCH METHODOLOGY: The study covers the analysis of risk and return of the
SOURCES OF DATA selected equities only.
The study is based on the secondary data only. The study covers the data analysis of past 5 financial
The data was collected through websites and years only i.e, 2016-2017.
journals
DATA ANALYSIS INTER PREATION:

INTERPRETATION: The Returns of Axis bank are highest in the year 2019-33 and lowest in the year 2020-(-
135).The total annual rate of return for the Axis bank is 46.24.
Table: 4.2 RISK OF AXIS BANK
AVERAGE DEVIATION SQUARE
AXIS BANK RETURN (R)
RETURN(Ro) (R-Ro) DEVIATIONS (R-Ro)
2017 25.0554324 22.08935332 2.966079053 8.79
2018 9.92907801 22.08935332 -12.16027531 147.87
2019 21.221865 22.08935332 -0.867488368 0.75
2020 -17.880795 22.08935332 -39.97014802 1597.61
2021 7.90322581 22.08935332 -14.18612751 201.24
TOTAL 46.2288064 1956.28
VAR 3041.96
SD 55.15
INTERPRETATION: The variance and standard deviaion of AXIS BANK is 3041.96 and 55.15
VARIANCE=1/(5-1)*(1131.54)
=282.88

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RETURN OF HDFC BANK:
HDFC OPEN CLOSE PRICE RATE OF
DIVIDEND RETURN
BANK PRICE PRICE CHANGE RETURN
2017 605 936 331 11 342 54.74
2018 936 1061 125 13 138 13.45
2019 1064 1272 208 20 228 19.64
2020 1276 1436 160 0 160 12.57
2021 1440 1479 39 6.5 45.5 2.87
103.29
AXIS OPEN CLOSE PRICE RATE OF
DIVIDEND RETURN
BANK PRICE PRICE CHANGE RETURN
2017 451 564 113 5 118 25.06
2018 564 620 56 0 56 9.92
2019 622 754 132 1 133 21.22
2020 755 620 -135 0 -135 -17.88
2021 620 669 49 0 49 7.90
TOTAL 46.24

INTERPRETATION:
The Returns of HDFC bank are highest in the year 2017-54.71 and lowest in the year 2021-2.70.The total annual
rate of return for the Axis bank is 102.86
RISK OF HDFC BANK:
HDFC RATE OF AVERAGE
DEVIATION SQUARE DEVIATION
BANK RETURN RETURN
2017 54.74 20.654 34.086 1161.85
2018 13.45 20.654 -7.204 51.89
2019 19.64 20.654 -1.014 1.028
2020 12.57 20.654 -8.084 65.35
2021 2.87 20.654 -17.784 316.27
TOTAL 103.27 TOTAL 1596.40
VARIANCE 399.10
STANDARD DEVIATION 19.97
INTERPRETATION:
The variance and standard deviaion of HDFC BANK is 399.10 and 19.97
Varience= 1/(5-1)*(1596.40)
= 399.10
Standard deviation= `=19.97

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Table: 4.5 RETURNS OF SBI BANK:
SBI OPEN CLOSE PRICE RATE OF
DIVIDEND RETURN
BANK PRICE PRICE CHANGE RETURN
2017 253 310 57 2.6 59.6 22.57326843
2018 311 296 -15 0 -15 -4.823151125
2019 298 334 36 0 36 12.08053691
2020 335 275 -60 0 -60 -17.91044776
2021 275 460 185 4 189 67.29389129
79.21409775
Graph 4.3 RETURN and RATE OF RETURN SBI BANK:

INTERPRETATION: The Returns of SBI bank are highest in the year 2017-22.52 and lowest in the year 2020-(-
17.91).The total annual rate of return for the Axis bank is 79.14
RISK OF SBI BANK:
SBI RATE OF AVERAGE
DEVIATION SQUARE DEVIATION
BANK RETURN RETURN
2017 22.57 15.842 6.728 45.26
2018 -4.82 15.842 -20.662 426.91
2019 12.08 15.842 -3.762 14.15
2020 -17.91 15.842 -33.752 1139.19
2021 67.29 15.842 67.29 4527.94
TOTAL 79.21 6153.47
VARIANCE 1538.36
STANDARD DEVIATION 39.22
INTERPRETATION:
The variance and standard deviaion of SBI BANK is 1538.36 and 39.22.
Variance=1/(5-1)*(6153.47)
= 1538.36
Standard deviation=
=39.22
Table 4.7 RETURN OF ICICI BANK
ICICI OPEN CLOSE PRICE RATE OF
DIVIDEND RETURN
BANK PRICE PRICE CHANGE RETURN
2017 233 314 81 2.5 83.5 34.79
2018 314 360 46 1.5 47.5 14.68
2019 362 539 177 1 178 48.90
2020 540 535 -5 0 -5 -0.92
2021 536 740 204 2 206 38.06
135.51

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INTERPRETATION: The Returns of SBI bank are highest in the year 2019-48.89 and lowest in the year 2020-(-
0.92).The total annual rate of return for the Axis bank is135.44
Graph 4.4 RETURN and RATE OF RETURN ICICI BANK:

Table: 4.8 RISK OF ICICI BANK:

ICICI OPEN CLOSE PRICE RATE OF
DIVIDEND RETURN
BANK PRICE PRICE CHANGE RETURN
2017 233 314 81 2.5 83.5 34.79
2018 314 360 46 1.5 47.5 14.68
2019 362 539 177 1 178 48.90
2020 540 535 -5 0 -5 -0.92
2021 536 740 204 2 206 38.06
135.51
INTERPRETATION:
The variance and standard deviaion of ICICI BANK is 398.61 and 19.96.
Variance=1/(5-1)*(1594.46)
= 398.61
Standard deviation=
=19.96
TABLE 4.9 RETURNS OF KOTAK MAHINDRA BANK
KOTAK OPEN CLOSE PRICE RATE OF
DIVIDEND RETURN
MAHINDRA BANK PRICE PRICE CHANGE RETURN
2017 720 1010 290 0.6 290.6 40.27
2018 1012 1257 245 0.7 245.7 24.21
2019 1254 1684 430 0.8 430.8 34.29
2020 1689 1996 307 0 307 0.18
2021 1997 1796 -201 0.9 -200.1 -10.06
88.89
GRAPH 4.5 RETURN AND RISK KOTAK MAHINDRA BANK:

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INTERPRETATION: The Returns of KOTAK MAHINDRA bank are highest in the year 2017-40.27 and lowest
in the year 2020-(-10.06).The total annual rate of return for the Axis bank is106.88
TABLE 4.10 RISK OF KOTA MAHINDRA:
KOTAK RATE OF AVERAGE SQUARE
DEVIATION
MAHINDRA BANK RETURN RETURN DEVIATION
2017 40.27 17.77 22.50 506.27
2018 24.21 17.77 6.43 41.38
2019 34.29 17.77 16.51 272.67
2020 0.18 17.77 -17.59 309.67
2021 -10.06 17.77 -27.84 775.56
TOTAL 88.89 1905.56
Variance 476.39
Standard deviation 21.82
INTERPRETATION:
The variance and standard deviaion of KOTAK MAHINDRA BANK is 476.39 and 21.82.
Variance=1/(5-1)*(1905.56) = 476.39
Standard deviation= =21.82
TABLE 4.11 RETURN OF HCL TECHOLOGIGES:
HCL OPEN CLOSE PRICE RATE OF
DIVIDEND RETURN
technologies PRICE PRICE CHANGE RETURN
2017 412 445 33 16 49 8.33
2018 445 482 37 8 45 8.49
2019 481 568 87 10 97 18.19
2020 569 946 377 8 385 66.27
2021 942 1319 377 42 419 40.12
141.41
GRAPH 4.6 RETUN AND RISK HCL TECHOLOGIGES

INTERPRETATION: The Returns of hcl are highest in the y ear 2020-40.02 and lowest in the year 2017-
8.00.The total annual rate of return for the Axis bank is 140.60
Table: 4.12 RISK OF HCL TECHNOLOGIES:
HCL RATE OF AVERAGE SQUARE
DEVIATION
technologies RETURN RETURN DEVIATION
2017 8.33 28.28 -19.94 397.89
2018 8.49 28.28 -19.79 391.69
2019 18.19 28.28 -10.09 101.87
2020 66.27 28.28 37.99 1443.52
2021 40.12 28.28 11.83 140.13
TOTAL 141.41 2475.12
Variance 618.78
Standard deviation 24.87

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INTERPRETATION:
The variance and standard deviation of HCL TECHNOLOGIES is 618.78 and 24.87.
Variance=1/(5-1)*(2475.12) = 618.78
Standard deviation= =24.87
TABLE 4.13 REUTNS OF INFOSYS
OPEN CLOSE PRICE RATE OF
INFOSYS DIVIDEND RETURN
PRICE PRICE CHANGE RETURN
2017 412 445 33 23.75 56.75 8.42
2018 445 482 37 37.5 74.5 8.81
2019 481 568 87 22.5 109.5 18.29
2020 569 946 377 31.5 408.5 66.33
2021 942 1319 377 30 407 40.09
141.96
GRAPH 4.7 RETUNS AND RISK INFOSYS

INTERPRETATION: The Returns of INFOYS are highest in the year 2020-70.88 and lowest in the year 2017-
2.00.The total annual rate of return for the Axis bank is 140.60
Table: 4.14 RISK OF INFOSYS:
RATE OF AVERAGE SQUARE
INFOSYS DEVIATION
RETURN RETURN DEVIATION
2017 8.42 28.39 -19.96 398.61
2018 8.81 28.39 -19.57 383.20
2019 18.29 28.39 -10.10 102.02
2020 66.33 28.39 37.94 1439.45
2021 40.09 28.39 11.70 136.92
TOTAL 141.96 2460.22
Variance 615.05
Standard deviation 24.80
INTERPRETATION:
The variance and standard deviation of HCL TECHNOLOGIES is 618.78 and 24.87.
Variance=1/(5-1)*(2460.22) = 615.05
Standard deviation= =24.80

TABLE 4.15 RETUNS OF TCS

OPEN CLOSE PRICE RATE OF
TCS DIVIDEND RETURN
PRICE PRICE CHANGE RETURN
2017 1183 1351 168 48 216 14.42
2018 1341 1893 552 48 600 41.24
2019 1896 2162 266 68 334 14.23
2020 2168 2863 695 52 747 32.12
2021 2880 3738 858 51 909 29.84
131.87

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GRAPH 4.8 RETUNS AND RISK

INTERPRETATION: The Returns of TCS are highest in the year 2018-41.02 and lowest in the year 2017-
14.20.The total annual rate of return for the Axis bank is 131.24
TABLE 4.16 RISK OF TCS
TCS OPEN PRICE CLOSE PRICE PRICE CHANGE DIVIDEND RETURN
2017 1183 1351 168 48 216
2018 1341 1893 552 48 600
2019 1896 2162 266 68 334
2020 2168 2863 695 52 747
2021 2880 3738 858 51 909
INTERPRETATION:
The variance and standard deviation of TCS is 618.78 and 24.87.
Variance=1/(5-1)*(413.63) = 139.11
Standard deviation= =11.79
TABLE 4.17 RETUNS OF TECH MAHINDRA
TECH OPEN CLOSE PRICE RATE OF
DIVIDEND RETURN
MAHINDRA PRICE PRICE CHANGE RETURN
2017 495 504 9 9 18 2.31
2018 501 723 222 14 236 44.37
2019 714 762 48 14 62 6.94
2020 766 973 207 30 237 27.15
2021 976 1791 815 45 860 83.55
164.34
GRAPH 4.9 RETUNS AND RISK TECH MAHINDRA

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INTERPRETATION: The Returns of TECH MAHINDRA are highest in the year 2021-83.55 and lowest in the
year 2017-2.31.The total annual rate of return for the Axis bank is 131.24
TABLE 4.18 RISK OF TECH MAHINDRA
TECH RATE OF AVERAGE SQUARE
DEVIATION
MAHINDRA RETURN RETURN DEVIATION
2017 2.31 32.86 -30.55 933.33
2018 44.37 32.86 11.50 132.29
2019 6.94 32.86 -25.92 671.86
2020 27.15 32.86 -5.71 32.70
2021 83.55 32.86 50.68 2569.23
TOTAL 164.34 4339.43
1084.85
32.93
INTERPRETATION:
The variance and standard deviation of TECH MAHINDRA is 1084.85 and 32.93.
Variance=1/(5-1)*(4339.43) = 1084.85
Standard deviation= =32.93
TABLE 4.18 RETUNS OF WIPRO
OPEN CLOSE PRICE RATE OF
WIPRO DIVIDEND RETURN
PRICE PRICE CHANGE RETURN
2017 178 236 58 2 60 32.61
2018 234 248 14 1 15 0.12
2019 248 246 -2 1 -1 0.19
2020 247 386 139 1 140 56.28
2021 385 715 330 1 331 85.71
174.93
GRAPH 4.10 RETUNS AND RISK WIPRO

INTERPRETATION: The Returns of TCS are highest in the year 2018-41.02 and lowest in the year 2017-
14.20.The total annual rate of return for the Axis bank is 131.24
TABLE 4.19 RISK OF WIPRO:
WIPRO RATE OF RETURN AVERAGE RETURN DEVIATION SQUARE DEVIATION
2017 32.61 34.98 -2.36 5.61
2018 0.12 34.98 -34.86 1215.28
2019 0.19 34.98 -34.79 1210.61
2020 56.28 34.98 21.29 453.47
2021 85.71 34.98 50.72 2573.51
TOTAL 174.93 5458.51
variance 1364.62
Standard deviation 36.94

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INTERPRETATION:
The variance and standard deviation of WIPRO is 1364.62 and 36.94.
Variance=1/(5-1)*(5458.51) = 1364.62
Standard deviation= =36.49
Table: 4.21 RISK AND RETURN ANALYSIS:
RANK EQUITIES SHARPE RATIO
1 TCS 2.23
2 ICICI BANK 1.35
3 INFOSYS 1.14
4 HCL TECHNOLOGIES 1.13
5 HDFC BANK 1.03
6 TECH MAHINDRA 0.99
7 WIPRO 0.94
8 KOTAK MAHINDRA BANK 0.81
9 AXIS BANK 0.54
10 SBI BANK 0.4
INTERPRETATION:
The average return and the risk of selected equities i.e AXIS BANK-9.24,16.81, HDFC BANK-19.97, SBI
BANK-39.22, ICICI BANK-19.96, KOTAK MAHINDRA BANK-21.82, HCL TECHNOLOGIES-21.82,
INFOSYS-24.8, TCS-11.79, TECH MAHINRA-32.93, WIPRO-36.94.
Graph 4.13 TOTAL YEAR RETURNS:

Table: 4.23 Performance of Equities basis on return:

EQUITIES TOAL RETUNS
AXIS BANK 46.22
HDFC BANK 103.275
SBI BANK 79.21
ICICI BANK 135.51
KOTAK MAHINDRA BANK 88.89
HCL TECHNOLOGIES 141.4
INFOSYS 141.94
TCS 131.85
TECH MAHINDRA 164.32
WIPRO 174.91
INTERPRETATION:
The total years of return for the selected equities are for AXIS BANK-46.22,HDFC BANK-103.275,SBI
BANK-79.21,ICICI BANK-135.51,KOTAK MAHINDRA BANK-88.89,HCL TECHNOLOGIES-
141.1,INFOSYS-141.94,TCS-131.85,TECH MAHINDRA-164.32,WIPRO-174.91.

@ IJTSRD | Unique Paper ID – IJTSRD51872 | Volume – 6 | Issue – 6 | September-October 2022 Page 369
 International Journal of Trend in Scientific Research and Development @ www.ijtsrd.com eISSN: 2456-6470
Graph 4.13 TOTAL YEAR RETURNS:

HYPOTHESIS:

INTERPRETATION:
Independent sample t-test is performed to test the significance difference between between return of banking and
information technology sector the value is greater than 0.05 that is 0.07. Hence, null hypothesis is accepted i.e
there is no significance difference between return of banking and information technology sector.
HYPOTHESIS:

INTERPRETATION:
Independent sample t-test is performed to test the significance difference between between risk of banking and
information technology sector the value is greater than 0.05 that is 0.07. Hence, null hypothesis is accepted i.e
there is no significance difference between risk of banking and information technology sector.

@ IJTSRD | Unique Paper ID – IJTSRD51872 | Volume – 6 | Issue – 6 | September-October 2022 Page 370
 International Journal of Trend in Scientific Research and Development @ www.ijtsrd.com eISSN: 2456-6470
FINDINGS
The total highest returns for the selcted equities
for the period is given by the AXIS BANK which
is 174.9 per-cent.
The lowest returns is given by the WIPRO which
is 46.22 per-cent.
The highest average returns for the selected
equities for the period is given by WIPRO which
is 34.98 per-cent with high risk of 36.94 per-cent.
The lowest average returns is given by the AXIS
BANK which is 9.24 per-cent with risk of 16.81.
The equity TCS is having high sharpe ratio(2.23)
with low risk of 11.79 .
The equity SBI BANK having low sharpe
ratio(0.40) with high risk of 39.22.
SUGGESTIONS
It is suggested for the investors who is able to
take more risk can go for WIPRO since it
generates more returns with more risk and also
having good sharpe ratio.
It is suggested for the investors who is able to
take moderate risk can go for ICICI BANK since
@ IJTSRD | Unique Paper ID – IJTSRD51872 | Volume – 6 | Issue – 6 | September-October 2022 Page 371
it generates good returns with moderate risk and
also having good sharpe ratio.
It is suggested for the investors who is able to
take low risk can go for TCS since it generates
good returns with low risk and also having high
sharpe ratio.
CONCLUSION
The study will guide the investor who want to
invest in EQUITIES by providing knowledge
about how to measure the risk and returns of the
EQUITIES in selected equities.
It is concluded that equity TCS is generated good
returns with low risk when compared to the other
equities.
It is concluded that equity WIPRO is generted
high returns with high risk when compared to the
other equities.
REFERANCE:
[1] https://www.nseindia.com
[2] https://www.moneycontrol.com